(Ignore Income Taxes in This Problem)The Management of Serpas Corporation

question 123

Multiple Choice

(Ignore income taxes in this problem) The management of Serpas Corporation is considering the purchase of a machine that would cost $180,000,would last for 5 years,and would have no salvage value.The machine would reduce labor and other costs by $46,000 per year.The company requires a minimum pretax return of 13% on all investment projects.The net present value of the proposed project is closest to:

• A)$27,138
• B)$50,000
• C)-$18,218
• D)-$33,565

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Definitions:

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding.

Venipunctures

The act of puncturing a vein with a needle for the purpose of drawing blood or for intravenous injection.

Blood Transfusion

The process of transferring blood or blood components from one person (donor) into another person’s bloodstream (recipient).

Transfusion Reaction

An adverse response that occurs in a patient receiving a blood transfusion, due to incompatibility or other factors.